A sawfly lays it's eggs in the layers of a leaf on a eucalyptus tree. When the eggs hatch into larvae, they congregate and munch their way through a section of leaves on the tree.
If you disturb these caterpillar type grubs they can spit sappy acidic stuff.
I removed these when I noticed them in the Eucalyptus gomphocephala we have in the garden, as the tree is yong and I didn't want it to have any extra stress from losing leaves, however on a mature tree a bunch of sawfly larvae won't cause much damage overall.
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